I had calrification in cash flow statement.
profit on sale of land are transfer to the Capital reserve,Does it affect the cash flow
statement
Thank u
Karthikeyan
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cash flow statement
Replies (5)
the entry is
cash a/c dr
to land
land a/c dr
to capital reserve..
but some texts say
cash a/c dr
to capital reserve
to land...
it s shown under cash flows frm investinf activities with the proceeds value...
which entry u will follow? wat logic u give?
cash a/c dr
to land
land a/c dr
to capital reserve..
but some texts say
cash a/c dr
to capital reserve
to land...
it s shown under cash flows frm investinf activities with the proceeds value...
which entry u will follow? wat logic u give?
All things which are recd. in cash affect the cash flow statement and land is credited only to the extent of its cost and balance is transferred to capital reserve or profit on sale of land which is realised in cash therefore capital reserve on sale of land will be considered in cash flow statement
how to arive the profit before tax on cash flow statement based on two years b\s.
profit diff on two year+
tax paid during the year+
proposed divid+
reserve tran during the year
how the reserve will be arive?
All cash flows will affect the cash flow statement. On sale of assets there is a cash inflow. So the total sale proceeds will be shown under investment activities. Tranaferring of profit on sale to capital reserve will not affect the cash flow statement.
both the transactions involve cash . cash flow statement shows the cash infloes and out flows. so it appears in the cash flow statement
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